A.P. Moller-Maersk completed the purchase of Hong Kong-based contract logistics company LF Logistics for $3.6 billion, adding 223 new warehouses to its network. The logistics provider has a strong presence in the Asia-Pacific market, a significant attraction for Maersk. With this purchase, Maersk now consists of 549 facilities worldwide and hopes to double its revenue throughout the next four years.
Per A.P. Moller-Maersk:
- The value of the transaction is USD 3.6bn (enterprise value) post-IFRS 16 lease liabilities, reflecting a pre-synergy EV/EBITDA multiple of 14.2x based on actual EBITDA for full-year 2021 for the in-country logistics business. Driven by the organic growth and commercial synergies, it is expected that revenue and EBITDA in the in-country logistics business will more than double by the end of full-year 2026.
- In addition, an earn-out with a total value of up to USD 160m related to future financial performance has been agreed as part of the transaction.
- As part of the transaction to acquire LF Logistics, Maersk has entered a strategic partnership with Li & Fung to develop a comprehensive range of end-to-end global supply chain services with Li & Fung focusing on the upstream supply chain and Maersk focusing on the downstream supply chain.